Operators, Fuel Providers Face New Fuel Tax in Canada

The Helicopter Association International is reminding operators that Canada is implementing a new fuel surcharge on airplanes and helicopters operating in Manitoba, New Brunswick, Ontario, and Saskatchewan. While tax collection means are still unclear, HAI advises that operators, distributors, wholesalers, and producers, must now register with Canada Revenue Agency (CRA) if they fly or do businesses in those regions, including international operators. Authorized through Canada’s Greenhouse Gas Pollution Pricing Act, the registration requirements will further extend to Nunavut and Yukon on July 1.

The rates are designed to reflect a carbon pollution price of $20 per tonne of carbon dioxide equivalent (CO2e) in 2019, rising by $10 per tonne annually to $50 per tonne in 2022, according to the CRA. For aviation gasoline, this equates to beginning at 4.98 cents per liter, rising to 12.44 cents on April 1, 2022. For jet fuel, this is 5.16 cents per liter, increasing to 12.91 on April 1, 2022.

While registration is required for Nunavut and Yukon, the fuel surcharge rates were set at $0 for those territories.

HAI expects the CRA to provide further guidance on collection of the fuel tax. “We don’t have the exact numbers, but I’m sure there are numerous U.S. and Canadian helicopter operators that routinely fly in the Canadian provinces mentioned on the CRA website,” said Matt Callan, HAI director of regulations and international affairs, in an association news brief.